Project Manager vs. General Contractor: Which Is Better for Your Build?

Hiring the right professionals means you don’t have to figure out how to renovate a house yourself—it can be the difference between a dream design and a construction catastrophe. However, if you’re a remodeling newbie, it can be tricky to work out whether you need to hire a project manager or a general contractor. This is especially true because both professionals sometimes work on the same project, and their roles can overlap.

This guide will help you decide who to hire to oversee and execute your home’s transformation to keep it on schedule, on budget, and in scope.

Project Managers vs. General Contractors: Key Differences

Project managers are the backbone of large renovation projects, overseeing everything from planning to design to the final payoff stage. General contractors are the boots on the ground, involved in the day-to-day practical implementation of the construction part of the project. 

Sometimes, a general contractor reports directly to the homeowner; other times, they work under the project manager. Depending on the scope of the project, it’s not unusual for the responsibilities of project managers and general contractors to overlap.

Project Managers vs. General Contractors: Responsibilities

Project managers help you define the project’s goals, scope, and blueprint and are the main point of contact for stakeholders. This means they have a collaborative or supervisory role alongside architects, structural engineers, and general contractors. 

Project managers keep things on schedule, within budget, and fully compliant with safety and legal standards. A project manager can help you hire a reputable and fairly-priced general contractor near you, requesting and reviewing bids for the job.

The focus for general contractors is on the construction phase of the project, managing the actual build work to comply with the agreed-upon design, budget, and construction standards. They are responsible for hiring subcontractors (such as electricians and plumbers), purchasing materials, and hiring equipment. 

Contractors are responsible for making day-to-day operational decisions. However, if you have also hired a project manager, the general contractor may have to consult with them regarding any major on-site decisions or issues.

Project Managers vs. General Contractors: Timing

Project managers come on board in the preconstruction phase of the project, supporting you from initial planning to final construction sign-off. This will be at least a month or two before the construction phase begins on large-scale renovation projects. Early engagement allows the project manager to set and stay on top of a realistic budget and timeline, secure appropriate permits, and hire and manage the right stakeholders for each project phase. This continuity also allows them to complete snagging inspections once construction is complete. 

How early a general contractor comes on board depends on whether they report to a project manager and their responsibilities. If they are working with a project manager, a general contractor will start work once the budget and timelines are in place, close to construction work starting. If they are working directly with the homeowner, hiring them earlier in the process can help better inform budgets and timelines.

Project Managers vs. General Contractors: Location

Don’t expect a project manager to be on-site every day. They will visit the site to check progress but often keep the project on track from an office or remote location. General contractors spend most of their time on-site managing their team of subcontractors and supervising the construction work.

Project Managers vs. General Contractors: Costs

The average cost to hire a project manager is 5% to 10% of the total project cost. They may charge a flat rate fee or an hourly rate, depending on the project scope and length. This fee is often on top of a general contractor's fee. However, hiring a project manager can prevent budgets and timelines from running over and reduce the stress of self-managing a big construction job.  

The average cost to hire a general contractor is 10% to 20% of the total project cost, or $300 to $500 per day. Most contractors provide a fixed-rate estimate based on the overall project. The contractor will absorb over-budget costs if you don’t request work outside the original scope and the contract conditions.

Project Managers vs. General Contractors: Qualifications

While requirements vary by state and city, general contractors require a license to work on your project. Avoid professionals who are not bonded or insured—this is a major warning sign of a bad contractor. Having appropriate credentials ensures the general contractor meets certain competency standards and that you will have financial protection if anything goes wrong.

Project managers don’t require licensing, but they will have strong experience and education if they are reputable. Check if they have relevant construction-related professional qualifications and are members of professional industry associations.